Governor's budget plan under study

President Mary Sue Coleman says the University is carefully studying the short- and long-term impact of two higher education funding scenarios proposed by Gov. Jennifer Granholm in her 2005 budget.

"We must assure both the affordability and academic quality our students demand and expect." —President Mary Sue Coleman

Under one scenario announced by the governor Feb. 12, those universities that hold tuition increases to the rate of inflation, or 2.4 percent, will have 3 percent of the 5 percent reduction from a midyear executive order restored to their base funding. If U-M goes along with the governor's plan, the cumulative reduction in base funding during the past 18 months amounts to 12 percent or nearly $43 million for the Ann Arbor campus, Coleman says.

Under the governor's second option, universities that continue to set their own tuition levels will not have the 3 percent restored, and they face an additional 3 percent cut in funding, making the overall reduction in a year and a half 18 percent. For U-M's Ann Arbor campus the cumulative total budget cut then jumps to $62.5 million.

The Flint and Dearborn campuses did not have cumulative figures to share at press time.

Coleman has said repeatedly that continual chipping away at funding for the state's colleges and universities threatens access to education as institutions are forced to scale back programs. And reduced access translates into fewer young people being prepared for the workforce Michigan needs to sustain its economy.

"We must assure both the affordability and academic quality our students demand and expect," Coleman says of the University's decision on the proposals.

Several universities already have accepted the governor's offer, including Central Michigan, Ferris State, Michigan State, Oakland and Wayne State. The presidents of Grand Valley State, Saginaw Valley State and Western Michigan universities have recommended that their boards take similar action.

The state is facing a $1.3 billion deficit in the next fiscal year that begins in October. The governor's budget plan would cut spending by $500 million and increase taxes $400 million.

Coleman will testify before the Senate Subcommittee on Higher Education at 10 a.m. Feb. 27 at U-M-Flint.

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